Which of the following statements about the equity method are true? Note: Select all that apply. Check All That Apply International accounting standards require the equity method for use with significant influence investees. U.S. GAAP require the equity method for use with significant influence investees. U.S. GAAP requires that the accounting policies of investees be adjusted to correspond to those of the investor when applying the equity method. Both IFRS and U.S. GAAP provide the fair value option for all investments that qualify for the equity method.

Which of the following statements about the equity method are true? Note: Select all that apply. Check All That Apply International accounting standards require the equity method for use with significant influence investees. U.S. GAAP require the equity method for use with significant influence investees. U.S. GAAP requires that the accounting policies of investees be adjusted to correspond to those of the investor when applying the equity method. Both IFRS and U.S. GAAP provide the fair value option for all investments that qualify for the equity method.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Knowledge Check 01
Which of the following statements about the equity method are true?
Note: Select all that apply.
Check All That Apply
International accounting standards require the equity method for use with significant influence investees.
U.S. GAAP require the equity method for use with significant influence investees.
U.S. GAAP requires that the accounting policies of investees be adjusted to correspond to those of the investor when applying the
equity method.
Both IFRS and U.S. GAAP provide the fair value option for all investments that qualify for the equity method.

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